A Case Study on Ashok Leyland, India Joint Venture With Nissan Motor Company, Japan

Submission Date: 21 st Feb, 2014

Student No: 1209675 *

Master of Business Administration MBA 4054 – Managing Change

Managing Change A Case Study on Ashok Leyland, India Joint Venture with Nissan Motor Company, Japan

Student’s ID:

1209675

Module Tutor:

Dr.Chris Grant

Submission Date: 21th Feb, 2014 Word count:

3667 words

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Table of Contents 1. Introduction............................................................................................................3 2. About the Organization..........................................................................................4 2.1

Joint Venture.......................................................................................................5

3. Problems Faced during and after Joint Venture Operations.................................6 3.1

Power distance...................................................................................................7

3.2

Individualism.......................................................................................................8

3.3

Masculinity..........................................................................................................9

3.4

Uncertainty Avoidance......................................................................................10

3.5

Pragmatism.......................................................................................................11

3.6

Indulgence........................................................................................................12

4. Critical Analysis Using Hofstede’s Cultural Analysis............................................12 5. Solution................................................................................................................15 6. Conclusion...........................................................................................................16 7. References...........................................................................................................17 8. Appendices..........................................................................................................19

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1. IntroductionDuring a transition of a company, organizational change occurs from its existing position to a new changed outlook. Any organisation when planning for a transition need to go through a process where employee do resist for any change; while organisation will look for minimizing the cost and maximizing it’s production and market share from the change effort. Looking in to present global business setting changes is inevitable and the organisation needs to be prepared for the change if they want to be competitive and remain in the market. Many reason can be said for the change; like change in technology and product; globalization of markets to which the organisation need to be prepared to respond in order to survive from their competitors etc (Burnes, B., 2009). In my report I have taken Ashok Leyland of India and Nissan Motors, Japan how they managed their organisational change during their joint venture operation to develop and manufacture Light Commercial Vehicles in India. The report will analysis the challenges of managing changes that came across during the transition period; key facts were the attitude of the employees to adapt to the change, issues that relates to difference in work environment, communication and cultural difference that were found during the transition stage will play the key highlight of the report. Report will discuss about the cultural differences; attitude towards the change in work style will be analysing the effect by making use of Hofstedes cultural dimensions. Last but not the least the report will highlight on the issues faced and

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how the management minimised the issues through proper management process and its reporting approach.

2. About the OrganizationBoth Ashok Leyland and Nissan Motors are both auto manufacturing companies producing various product line-ups. Raghunandan Saran established the Ashok Motors for amassing Austin A40 and A70 cars as a team with the Austin Engine Co. Ltd, England in 1949 and the Processing started in September at the industrial manufacturing plant placed at Ennore, Chennai (India), also soon the first indigenously amassed A40 Austin car was taken off in 1949.Ashok motors and Leyland, UK agree to work together in 1950.Since from over the six decades we have been moving individuals and goods, touching millions over the fifty nations worldwide. Presently we are the leader of the Hinduja Group, which is one of the biggest vehicles producer in India and with the turnover of US$ 2.3 billion (2012-13) constantly conveyed benefits to our stakeholders since initiation (Ashok Leyland Overview, 2013) for further details about the company refer Appendix1. Nissan Motors, well-established in the Yokohama city, Kanagawa Prefecture in 1933, Nissan motor Co., Ltd. right now fabricates vehicles in 20 nations and regions around the globe, incorporating Japan. Nissan offers product and administrations in more than 160 nations and ranges worldwide. In 2012, we accomplished another sales record of 173,000 units, an increment of 12% from the past monetary(fiscal) year. In the 16th Nikkei Natural Administration Overview, Nissan was named first around car organizations and second generally. What's more Nissan has incredibly expanded its standing around "Best Worldwide Green Brands"—being named fifth 4


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around 50 top brands (Nissan Motor Company Annual Report, 2013). For further details about the company refer Appendix 2.

2.1 Joint VentureAshok Leyland and Nissan Motors went into a joint venture agreement to explore their opportunity in Indian market for their Light Commercial Vehicles; with wide network already created and established by Ashok Leyland in the segment made Nissan Motors to jointly work with them and produce new product line-ups and delivery quality product at affordable price in India, since the manufacturing cost is lesser in India compare to Japan. It was a smart move by Nissan to collaborate with existing manufacture in India rather than building its own plant in India and start up as a new firm. So both Ashok Leyland and Nissan can get together and share their expertise in Light Commercial Vehicles and market the same throughout the world by which it will be a win-win situation for both the partners. The new Greenfield plant had acquired 280 acres near Chennai, India and obtained all clearances for construction, but was waiting for a more conducive timing for constructing it. Once the new plant under the Joint Venture is completed, the production lines of Dost from Ashok Leyland and Stile from Nissan would move to the new facility, Seth said. After the monetarily great Dost and the currently launched STiLE, now PARTNER and MiTR are the most recent offerings from the Ashok Leyland – Nissan Joint Venture (Ashok Leyland press-releases, 2014). By creating new brands and collaborating with each other’s technology no-how have created a new concept of joint venture business model doing well in the competitive market; but on the other hand employees attitudes and their cultural differences are not

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looked into it during the transition process. I will by highlighting the issues in the next session accordingly.

3. Problems Faced during and after Joint Venture OperationsAshok Leyland is Indian based company and Nissan Motors is Japanese based company; each one of them is having their own strength and weakness in their respective area of expertise. Key reason for joint venture operation between the two were Nissan want to venture in to Indian automobile business and expand its operations in Asia pacific and as far Ashok Leyland is concern it wants new design and technological innovation it is light commercial vehicles segments and improve its sales and its brand image. Due to market competition Ashok Leyland sales and its brand image was minimizing due to the old models / products they have in the market which was not more attractive for the customers; since customers now a days look into various aspects in the vehicle they purchase and now with many automobile manufacturing building Light Commercial Vehicles; Ashok Leyland need some creative and new design with unique brand to market their product and as far Nissan is concern they want to venture in to Indian market with joining partnership with major automobile manufactures in India so they can use their facilities and manufacturing plants rather than setting up a new plant in India by themselves.Cost of manufacturing in India with joint collaboration will reduce their cost of production and this will help both Ashok Leyland and Nissan to capitalize the market share in Light Commercial Vehicles with better models at affordable price and capture a market share . For a smoother integration of two organisations for joint venture and manufacture and sell the product in the competitive market is not an easy process this will require to give away some existing processes and build new process with respect to 6


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structural change in organisation hierarchy, adjusting with work environment and to make sure the employees attitudes towards the cultural change is acceptable and they are comfortable in accepting the change (Burnes, B., 2009). Any change in process will invariable has an impact on the employees those who are going to implement these changes. During the integration process definitely there will be some kind of obstructions will come across, which I have mapped with Hofstede Model. For further details refer Appendix 3 for Hofstede Model. India consists of vast tradition with different languages and with different people having different cultural backgrounds compared to Japan. I’m using the 6-D Model through which I will be illustrating the analysis of what I have found out.

3.1

Power distance-

This measurement manages the way that all people in social orders are not equivalent – it communicates the disposition of the society towards these disparities around us.power distance is characterized as the degree to which the less capable parts of establishments and organisations inside a nation want and acknowledge that power is appropriated unequally (Hofstede, 1997). In Ashok Leyland management structure the orders are followed from top to bottom according to the hierarchy which is almost similar to Nissan Motors management structure; but the decision taken by Nissan management takes more process and stages for any approval compare to the Ashok Leyland management takes; for instance a middle level manager can take a certain decision under his team / department level decisions by himself but Nissan middle level manager need to ask

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his/her superior to take a decision; this create time delay and decision making process slower. As far the Japan is concern it has the score of 46, and it falls in the borderline categorized society. Japanese are always bound to follow their hierarchical position [15]

. As when compare to other Asian cultures it is not that much. Reason for not

having a higher score for Japan because it is called meritocratic society were as India even though it follows the hierarchical management style its score is 71 which makes much better[15]

3.2

Individualism-

The major issue tended to by this measurement is the level of reliance a social order keeps up around its parts. It needs to do with if individuals' mental self-portrait is characterized regarding "I" or "We". In Independent social orders individuals should care for themselves and their direct family only. In Collectivist social order's individuals have a place with 'in groups' that deal with them in return for honesty/loyalty (Hofstede, 1997). Ashok Leyland and Nissan employees are almost of same nature when it comes to loyalty to their employers. And from Hofstede study it is proven that both India and Japan in terms of Individualism they score “Japan scores 47 on the Individualism dimension and India scores 49” [15] Certainly both Japanese and India community shows more similar characteristics of been a collectivistic society; but issue is Indian employee tends to bring in his/her own relative or friends into the organisation when any openings are created; so they have their own friends/relatives and want to form a group among themselves; due to his sometime misunderstanding and conflict takes place during the selection 8


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process with other levels/department were the middle manager may be a Japanese employee of Nissan and he object the same and want to follow the proper procedure of recruiting through HR Department.

3.3

Masculinity-

In Ashok Leyland what I have come across is the employee are very sincere and hardworking in nature and focus on their success and achievements as an individual rather than as a team; whereas on the contrast Nissan employees work in as a team and want to share the benefits among the team and they feel work in team and sharing knowledge and explore new things will help them to achieve greater height. In most of the project where both Ashok Leyland and Nissan employee have to share their view and work together to achieve the final outcome; it takes lot of attitude problems among them and that leads to delay in completion of the work allocated. For instance Middle level employee (Indian, Female) of Ashok Leyland gives a work order to Nissan Middle level employee (Japanese, Male) employee; he is not comfortable in executing the order due to Masculine nature they have been bought up in their society. Still in Japan it is very difficult for a woman to be in a senior position in any organization. This attitude sometime delays the work of one department to another and creates a huge confusion among the middle and senior level management staff when it comes to take any decision. As far masculine society is concern India scores 57 and whereas Japan scores 100. Japan considered being the world most masculine society compared to any other country, in case of India it is shows its visual display of success and power. However Japan, tends to be towards mild collectivism, and we don’t see a competitive nature of behaviors which in general we expect from masculine culture [15] 9


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3.4

Uncertainty Avoidance-

The degree to which the parts of a culture feel debilitated by questionable or obscure circumstances and have made convictions & organizations that attempt to dodge this is reflected in the UAI score (Hofstede, 1997). Nissan Motors employees are more focused and calculative in risk assessment and also plan well ahead of any untoward instance take place and they strictly follow procedures and rules; whereas Ashok Leyland employee certain times by pass the system and be more flexible and adjust and keep a blind eye to the rules. Often situation come up when both the employees have to work together on a certain project and complete it on time as per the process given to them; for instance the project have to complete on Friday at 6pm then Indian employee try to finish on Saturday 6pm stating it is off day and we can work it out and complete it; this friction creates a disturbing work environment sometimes. Another instance Nissan staff will be on time and leave on time; whereas Ashok Leyland staff come late and leave late from the office, Indian way of working style they say. So a mismatch occurs in most of the occasion. Japan score 81[15] and India scored 31[15] under this dimension. Reason in Japan fear of earthquakes are certain and they always take preventive measures well ahead, and their brought culture from school well that they always reluctant to do things without precedence. Nissan Manager ask all the facts and details before taking any decision but Indian manager with their experience they take the decision and this has positive as well negative impact in some cases.

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3.5

Pragmatism-

Ashok Leyland employee are more religious and culturally bounded in tradition and mostly follow Hinduism and the management looks into very quarter profits and what the shareholders can get at the end of each quarter; it is Indian mind frame they think for short term gains whereas Nissan employee are not so religious minded they are quite practical minded and they think on long term. Even in the difficult market situation they want to invest more on R&D and explore new product design and prepare for the next years do better, but Ashok Leyland wants a faster growth rate at the minimum possible time frame. Some of the investment project are waiting for government approval to clear from the state government of Tamilnadu, India but due to political issues it is getting delayed and as far Nissan is concern they are ready to wait and get the approval but the delay is creating a huge cost for Ashok Leyland in the short term and their annual turnover for the year 2013 is not so good. Joint venture will do well in long run and it need some time to click up. Japan has a high score of (80) whereas India has an intermediate score (52)

[15]

under

this dimension [15]. Concept of living life from person to person varies and the cultures of one’s country play a vital role in the management decision process.

3.6

Indulgence-

This measurement is characterized as the degree to which individuals attempt to control their cravings and driving forces, in light of the way they were raised. Generally week control is called "indulgence" and moderately solid control is called "restraint". Culture can, thusly, be portrayed as liberal or limited (Hofstede, 1997).

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From analysis both Ashok Leyland and Nissan Motors employees it seems their posses’ relatively strong control over their desires. This aspect of Indulgence more or else matches the employee’s attitude and no much issue in these regards. India got a scored 26 in this dimension, and Japan with score of 42 this reflect Japan falls under the cultural restraint

[15]

. Under this dimension having a low score means

tendency to cynicism and pessimism [15].

4. Critical Analysis Using Hofstede’s Cultural AnalysisA meaning of culture as given by Hofstede may be "A group modifying of the mind which recognizes one assembly from an alternate" (Hofstede,1980). Also there are numerous definitions to culture yet in straightforward terms it might be seen as the convictions, standards, qualities and attitudes of the individuals."Culture is a situated of fundamental suppositions

imparted answers for general issues of outer

accommodation (how to survive) and inside incorporation (how to stay together)which have advanced over the long haul and passed on starting with one era then onto the next" (Schein ,1985). Culture of one’s country plays a vital role in today’s modern day management techniques. Since now a days major companies are either joining hands with each other in joint venture or acquisition/merger take place considering the expansion in mind and keep also they are very particular to reduce the cost and increase the productivity. Many multinational organisations from Europe, US, UK are planning to open up their office in Asia pacific and Asian countries are key in acquiring major companies in Europe, US, UK vice versa since the Asian market is doing well.

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While analysing the two organisations Ashok Leyland and Nissan Motors on the Joint venture it is found that cultural differences takes a higher precedence and accordingly the explanation was provided in the earlier section. Further to be more precise from the latest research studies of Hostede’s Six Dimensions of culture please see the graph. Further details refer Appendix 3.

Source: http://geert-hofstede.com/japan.html

From the physical finding and the research studies conducted by Hostede’s on comparison Japan and India the above graph have given a clear scores that almost matches the finding obtained from both the organisation Ashok Leyland and Nissan Motors on their joint venture operations in India. Only two dimension scores of Individualism and Indulgence are more or else matching with each other’s culture and in line with the values of the employee of both the organisation in reality as well. But other dimension scores are quite different and vary a lot with attitudes of the two nationalities differs a lot in their cultural behaviour at work. When we take the score of Uncertainty avoidance (UA), Japan scoring a relatively higher value (81) compared to India (31) seems quite a large difference of behaviour

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demonstrated by Ashok Leyland vs. Nisan Motors employees. Japan employee always follow strict rules and obey the procedure that is laid out by their superior or the management and they act only on that; they do give high respect to the rule and procedures; on the other hand Ashok Leyland employees tend to be more informal rather than formal approach and they to adjust easily within their colleagues and they have greater tolerance to novel and abstract ideas or concepts. Nissan employee have hierarchy order and they strictly follow the same and go with centralized decision making compared to Ashok Leyland where hierarchy was followed but not to the extent of Nissan. In Ashok Leyland more group participation and one’s self thoughts are valued. From the finding it was clear that Nissan employees were very well prepared for the future risk and they are ready to wait and later accept the change; but Ashok Leyland employees work on the present outcome and immediate return rather than wait for the long term benefits. This was mainly due to the cultural difference and the brought up of their individual countries culture. Huge difference was also found from the Hostede’s survey on the scores of masculine with Japan score with 100 and India score only 57. It was due to the cultural acceptance of the tradition they been brought up from generations. Women in general been kept below the men in corporate Japan compare to India; where the emerging market in Asia pacific more women entrepreneur are coming up and they do well above men in most of the case.

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Student No: 1209675 5. Solution-

Ashok Leyland has its own employee recognition and continuous improvement programmes which internally takes care of its employee. Some of the initiative take by the management have shown positive outcome for the employees. Few schemes are MISSION GEMBA, IMPROVE, Future Leader Programme (FLP), Mission YEs – Powered by Youth, BLESSING,"RISE", 100% Club, Green Shield (For further details refer Appendix 4). Initiative like Gemba makes the team as well the individual employee to perform well and it recognise their potential and creates a bonding with the organisation to grow further in their carrier. Youth programmes and team building efforts are all well-structured in the HR policy. Ashok Leyland employees are not trained in cross cultural training as compare to Nissan Motors. At Nissan Cultural Diversity Training are conducted to support smooth cross-cultural communications among different nationality thus enabling them to adjust to different work environment world-wide.(For further details refer Appendix 5). What lag in the issue that I come across is the cross cultural co-ordination and how to adjust and understand the different country culture and their people so that the employee can work in a cordial and friendly work environment with no attitude issues and misunderstanding. A cross cultural training for both Ashok Leyland and Nissan Motor employee need to be done; so that they understand each other’s culture better and know how to respond and act during their job. By doing this it will be better for both the countries employee to know each other well and they can take action appropriately and wise decision can be obtained at a faster rate rather than attitude / ego etc. can be easily sorted out at the earliest. Key concept of joint venture is to make sure they obtain the maximum benefits from one another and share their thoughts and grow further. 15


Student No: 1209675 6. Conclusion-

“Culture is the group modifying of the mind which recognizes the parts of one class of individuals from an alternate"(Hofstede, G., 1984). From the analysis and the steps taken by the organisation to integrate with one another seems that the joint venture partnership between both the organisation will lead light vehicle segments in a long run in global market and their employees strength to back up their management will definitely boost the organisation turn over at a tremendous growth in the next few years. Key strength for both the organisation is their loyal and dedicated employees; only think they need to do his training them to understand each other’s culture and working style; once they get used to it than nothing can stop them.

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Student No: 1209675 7. References-

[1] Ashok Leyland Overview, 2013 [Online] available http:// www .ashokleyland .com/overview (Accessed 19/12/2013) [2] Ashok Leyland press-releases, 2014 [Online] available http://www.ashokleyl a nd .com/press-releases-list (Accessed 01/12/2013) [3] Browaeys & Price “Understanding cross cultural Management, 2nd Edition Pearson Education Limited 2011 [4] Burnes, B, (2009), Managing Change, 5th Ed, Pearson UK Geert Hofstede (1980). Culture's Consequences: International Differences in Work-Related Values (Cross Cultural Research and Methodology) [Paperback] [5] Hidden Differences: Doing Business with The Japanese By Edward T. Hall and Mildred Reed Hall [Online] available http://www.internationalforum.com/ Articles/hidden_differences%20by%20Hall.htm (Accessed 19/01/2014) [6] Hofstede, Geert, Gert Jan Hofstede and Michael Minkov. Cultures and Organizations: Software of the Mind, 3rd ed. New York: McGraw-Hill. 2010. [7] Investorwords, 2014 [Online] available http://www.investorwords.com/2671/joint_venture.html (Accessed 14/12/2013) [8] John R. Schermerhorn Jr. (2009). Exploring Management [Paperback] September 30, 2013 [9] Lewin, K. (1947a), Frontiers in Group Dynamics, In D.Cartwright (ed) (1952): Field Theory in Social Science. Social Science paperbacks: London [10] Mc Shane S, Von Glinow A “Organizational Behaviour” (2000) Published by McGraw-Hill Companies and printed in the United States of America [11] Maurer, R. (1996). Using resistance to build support for change. Journal for Quality & Participation, pp. 56-63. [12] Nissan Motors Global, 2013 [Online] available http://www.nissan-global.com/EN/NEWS/2008/_STORY/080526-01-e.html (Accessed 09/12/2013). [13] NISSAN MOTOR COMPANY Annual Report 2013 [Online] available http://www.nissan-global.com/EN/DOCUMENT/PDF/AR/2013/p09_e.pdf (Accessed 09/12/2013).

[14]

Hofstede, G., 1984 National cultures and corporate cultures. In L.A.

Samovar & R.E. Porter (Eds.), Communication Between Cultures. Belmont, CA: Wadsworth. [15] The Hofstede Center, Geert Hofstede, [Online] available http://geert17


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hofstede.com/japan.html (Accessed 19/01/2014)

8. AppendicesAPPENDIX 1: Company Profile Ashok LeylandAshok Leyland, for over six decades, we have been moving individuals and products, touching you and millions over 50 nations worldwide. Our buses securely convey 70 million travelers to their ends consistently.

Shut

700,000 of our vehicles keep the wheels of economies turning and, as the biggest supplier of logistics vehicles to the Indian Armed force, we assume a discriminating part in keeping our outskirts safe. For our clients, we are resolved to give transport results that offer the best working matters of trade and profit while for clients of our vehicles, solace and security. This has driven us to pioneer thoughts that have gotten to be industry standards powered both by our hearty characteristic Research and development competencies and the quality of vital partnerships manufactured with worldwide innovation guides. Headquartered in Chennai, India, our manufacturing footprint is pan-India with two facilities in Prague (Czech Republic) and Ras Al Khaimah (UAE). 18


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To offer you more from our stable of offerings, we have inked 50:50 Joint Ventures (JV) with Nissan motor Organization (Japan) for Light Commercial Vehicles and John Deere (USA) for development supplies. Our JV with Mainland AG (Germany) is for creating auto Infotronics while the unified with the AL teams Gathering is for preparing high press pass on throwing expelled aluminium parts for both the car and telecommunication divisions. [Source: http://www.ashokleyland.com/overview] The shareholding structures of the three joint ventures are as under: 

Ashok Leyland Nissan Vehicles Pvt. Ltd., the vehicle manufacturing company will be owned 51% by Ashok Leyland and 49% by Nissan;



Nissan Ashok Leyland Powertrain Pvt. Ltd., the powertrain manufacturing company will be owned 51% by Nissan and 49% by Ashok Leyland;



Nissan

Ashok

Leyland

Technologies

Pvt.

Ltd.,

the

technology

development company will be owned 50:50 by the two partners. Ashok Leyland, flagship of the Hinduja Group, launched two new Light Commercial Vehicles (LCV) - PARTNER truck, India’s first air-conditioned LCV goods vehicle and MiTR bus, a LCV bus with best-in-class comfort. After the commercially successful Dost and the recently launched STiLE, now PARTNER and MiTR are the latest offerings from the Ashok Leyland – Nissan Joint Venture. [Source: http://www.nissan-global.com/EN/NEWS/2008/_STORY/080526-01-e.html]

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APPENDIX 2: Company Profile Nissan Motors-

[Source: http://www.nissan-global.com/EN/NEWS/2008/_STORY/080526-01-e.html]

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APPENDIX 3: Hofstede Model 1) Power Distance (PDI) This extent communicates the degree to which the less powerful parts of a social order acknowledge and need that power is disseminated unequally. The crucial issue here is the way a social order handles imbalances around individuals. Individuals in social orders showing a vast level of power separation acknowledge a progressive request in which everyone has a spot and which needs no further support. In social orders with low power separation, individuals strive to equalise the dispersion of power and interest avocation for imbalances of power. 2) Individualism versus collectivism (IDV) The high side of this extent, called individualism, might be characterized as an inclination for an inexactly weave social schema in which people are relied upon to deal with just themselves and their quick families. Its inverse, socialism, speaks to an inclination for a firmly weave schema in the public eye in which people can want their relatives or parts of a specific in-gathering to take care of them in return for unquestioning devotion. A social order's position on this size is reflected in if individuals' mental self portrait is characterized as far as "I" or "we." 3) Masculinity versus femininity (MAS)The masculinity side of this measurement speaks to an inclination in the public eye for accomplishment, valor, self-assuredness and material prizes for victory. Social order in question is more aggressive. Its inverse, womanliness, remains for an

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inclination for collaboration, humility, looking after the feeble and personal satisfaction. Social order in question is more agreement arranged. 4) Uncertainty avoidance (UAI) The uncertainty avoidance dimension communicates the degree to which the parts of a social order feel uncomfortable with uncertainty and vagueness. The crucial issue here is the way a social order manages the way that what's to come can never be known: would it be a good idea for us to attempt to control what's to come or simply given it a chance to happen? Nations displaying solid UAI uphold inflexible codes of conviction and conduct and are prejudiced of strange conduct and thoughts. Feeble UAI social orders keep up a more loose mentality in which practice numbers more than standards. 5) Pragmatic Versus Normative (PRA) This dimension depicts how individuals previously, and in addition today, identify with the way that so much that happens around us can't be demonstrated. In social orders with a standardizing introduction most individuals have an in number yearning to demonstrate however much as could reasonably be expected. Individuals in such social orders have an in number concern with securing unquestionably Reality; they are regulating in their reasoning. They display extraordinary appreciation for conventions, a generally little penchant to put something aside for what's to come and a concentrate on attaining speedy outcomes.

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In social orders with a commonsense introduction, most individuals don't have a necessity to illustrate everything, as they accept that it is difficult to see completely the unpredictability of life. The test is not to know reality yet to carry on with a temperate life. In social orders with a sober minded introduction, individuals accept that truth depends truly on circumstance, setting and time. They demonstrate a capability to adjust customs effortlessly to changed conditions, an in number affinity to spare and put thriftiness and diligence in accomplishing effects. 6) Indulgence versus Restraint (IND) – Indulgence remains for a social order that permits moderately free satisfaction of essential and characteristic human drives identified with appreciating life and having a ton of fun. Control remains for a social order that stifles satisfaction of requirements and manages it by method of strict social standards.

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APPENDIX 4: Ashok Leyland Employee Recognition ProgrammesA Great Place To Work For! Exemplary work deserves rewards and recognition and we have a number of continuous improvement activities. MISSION GEMBA – launched in 2005, is one of our most successful initiatives aimed at information spread, developing skills, empowering employees to reach world-class levels of quality, cost and delivery with recognition and reward for performance. ‘Gemba’ means ‘real place’ in Japanese, refers to the shop floor. The manufacturing units are divided into function-based ‘Gembas’, totally over 100 now, and each ‘Gemba’ is run as an independent ‘business’ by empowered ‘Gemba Unit Leaders (GULs) chosen based on their performance track record. ‘Mission GEMBA” has triggered an attitudinal transformation of the workforce, operational excellence to decongest bottlenecks and continual improvements in several core areas. IMPROVE - a home-grown employee engagement programme now into its 15th successful year,it has emerged as a platform to showcase the best projects by our employees on productivity improvement, efficiency enhancement and cost cutting. An annual, company-wide contest, it goes beyond the existing Quality Circles (QCs) to include new cross functional employee teams too. Having assumed the proportions of a mass employee movement, Improve sees more than 50% of our employees participating and the impact of these projects to the bottom line till date has been to the tune of over Rs. 400 million.

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Future Leader Programme (FLP)–Class will tell and this is a systematic attempt at identifying and nurturing future leaders. Mission YEs – Powered by Youth: is a programme aimed to engage and harness the substantial "youth power" available amongst us to meet the emerging business challenges in a vibrant and energetic culture focused on competitive attributes of Speed, Innovation and Attitude BLESSING – Opportunities for the discerning is the credo of this unique HR initiative that we have introduced in our Pantnagar Unit. Aimed at developing shop floor skills, youth who have passed 12th grade are recruited and educated or trained by us, at our expense, in partnership with a renowned technical and training institute. Isn’t this a novel way to earn while you learn on the shop floor? "RISE" (Reward for Individual Search for Excellence) 100% Club our highest reward for exemplary individual or team performance Green Shield (best unit for environmental sustenance) A great place to learn Wrapped in lush greenery, the Management Development Centre (MDC) at Hosur evokes a sense of calm and peace of mind that is ideal for a seat of leaning. Neatly appointed, it is equipped with all the requisite infrastructure like air-conditioned classrooms, a well-stocked library, a computer lab, a multi-purpose convention hall and excellent boarding, lodging and leisure facilities. So whether you would like to hone your creative abilities or develop your personality or just learn a little more, the MDC is where you should head for where till date, more than 1,000 (including 200 non-Ashok Leyland) programmes have been conducted. 25


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[Source:http://www.ashokleyland.com/employment-engagement]

APPENDIX 5: Nissan Motors Japan Cross Culture Programmes-

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Student No: 1209675 Cultural Diversity Training (Japan)

Nissan offers preparing sessions to match diverse social foundations to help smooth multifaceted correspondences. There are French, Chinese, Indian, German and Japanese preparing sessions accessible. Renault representatives take part in the Japanese social trainings to encourage better cooperation with their Japanese associates. Social differing qualities is the establishment of our corporate society. Events on Cultural Diversity (Japan)

We compose social occasions where Japanese and non-Japanese workers can examine issues and look for "WIN-WIN" results. Offering of one's thoughts and encounters can prompt new bits of knowledge and develops the comprehension around others.

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Student No: 1209675 Cross-cultural e-learning program (Japan)

Nissan's cross-cultural e-learning in program targets Japanese workers. It comprises of an essential course about key contrasts with different societies and how to convey both effectively and successfully in an all the more all inclusive situated nature, and in addition a progressed course that uses careful investigations from working together in such developing nations as India, China and Brazil to help members distinguish social contrasts and unobtrusive implications from English statements. Both projects help Nissan representatives to grow their comprehension of the world and improve their relational abilities. [Source: http://www.nissan-global.com/EN/COMPANY/DIVERSITY/CULTURE/]

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A Case Study on Ashok Leyland, India Joint Venture With Nissan Motor Company, Japan

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